MLM And CBD – The Top Reasons To Avoid Any Company That Follows This Business Model

The spotlight has been on CBD oil for quite some time now, and it’s popularity among many, young and old, is increasing.

The dietary supplement industry is expected to hit over 210 billion by 2026, and CBD oil is fast carving itself a giant chunk out of that market. Despite legal issues everywhere surrounding CBD, it seems like everyone and their dog want a piece of it.

Enter the multi-level marketing(MLM) CBD companies.

What Is MLM?

For those of you who are unfamiliar with the term, let’s break it down.

MLM stands for multi-level marketing. It may also be referred to as pyramid selling, network marketing, or referral marketing.

In these types of companies you have multiple levels of people who promote and sell a product that is being offered. There are the people at the top, the people underneath them, and the people underneath those people, and so on.

You generally have to pay to sign up for the “opportunity” to promote this product, and you earn money by sharing the product to other people using a referral link.

In the majority of these, you also have to pay a certain amount every month in order to earn bonuses, or recruit so many people before you can even begin to earn. They are incentivized in a way as to pressure people to continually attempt to recruit more people into the business.

When these people purchase something through your link, you earn a percentage of the amount sold, called a commission. If anyone decides to sign up under you and they sell through their link, they make a commission, and you also make a smaller commission. And on and on the wheel rolls. Sounds great right?

Wrong. And for more than a few reasons.

According to a report done on 350 MLM companies, 99% of people who enter in to these companies will lose money, not earn. That’s a ridiculous number to even consider.

So why do so many people continue to sign up? Well, the claims that you are going to make huge amounts of money are one. The ever popular idea that you are going into business for yourself is another.

Everyone wants the chance to be able to do something that will enable them to finally quit their full time jobs and work from home, and what better way to do so than spamming your friends and family and harassing them to buy from you?

In the age that we live in now, it’s not just your friends and family that are the targets anymore. With the number of people using social media and other online sources as the base for their “business”, these companies are popping up everywhere, and can be found on almost every social media platform, in every group, no matter how big or small.

Unfortunately for many, these reps will say anything and everything under the sun to convince you that their product is the best out there, because the only way they make a profit is if you buy. Of course, they are going to say whatever it takes. It’s a vicious cycle that is hard to break, and for some, morals go way down when money is at stake.

The mindset of MLM companies has been called cult-like, and the culture within them is strong. I’ve seen some absolutely absurd claims now regarding CBD oil, which I will go into depth on a little further down.

These companies target people who are struggling to make ends meet by promising something only a very small few ever get a taste of. Statements like “Join the hottest and fastest growing market out there today”, “Be your own boss”, “Tired of living paycheck to paycheck, sign up today”, “Unlimited earning potential”, etc, are just some of the common phrases you’ll see across the board on these sites.

Long Live The Pyramid Scheme…

If you’ve been around awhile, you’ll likely have heard the term “pyramid scheme” once or twice in your life.

The pyramid scheme worked by sucking you in and making you pay to join a program, whatever that might have been. You then earn money by recruiting others into paying for the program, which often has no actual product at the center of the business. All of the commissions you earn in a pyramid scheme come from recruiting new people, who then go on to sign others up.

You generally have to pay to stay active in the program, or stay at a certain level, which is how people end up losing so much money from them. Only the few at the top levels of the pyramid are the ones making any money off of it.

The money keeps being funneled up to the top, with more and more people joining the bottom of the pyramid, each level larger than the one before it.

Statistics and logic have proved time and time again that these types of businesses will ultimately collapse on themselves. After all, the world is only so big, and the number of people who are able to join is finite.

Here’s a graphic to show just how unsustainable a pyramid scheme really is:

The pyramid scheme as we used to know it has changed a bit, and is now illegal. In order for these types of businesses to run legally now, there has to be an actual product for sale. In some places in the world, this type of business is illegal no matter if they are selling a legit product or not.

It’s also not technically referred to a pyramid scheme anymore, rather we call it MLM. Regardless of the name, and the fact that there is now a product to be had from it, the fundamentals remain the same.

When it comes to MLM and CBD companies, it is particularly dangerous…

As CBD oil has gained popularity, the number of claims about it has grown far beyond what anyone has expected. A quick Google search on the subject brings up articles claiming that it can quite literally cure every ailment known to man.

It is, in fact, a fairly new development in the medical industry, and the alarming lack of actual research on the subject needs to be addressed. All around the globe right now there are studies being conducted, which is awesome, but what is happening right now is these MLM CBD companies are promoting misinformation that doesn’t have a lot of actual research to back it up.

Some claims that I have heard from CBD reps, and these are just the ones I’ve come across personally.

CBD will cure every medical issue you have – So not true. CBD has a lot of different uses because of the way it works within our Endocannabinoid System. CBD and THC bind to receptors that are located all throughout us, and is why it works on several issues, but by no means does this make it a cure all for everything.

CBD won’t cause a fail on a drug test – So legally in a lot of places around the world, CBD can only contain 0.3% THC. This is an extremely low amount, and won’t cause a “high”, but it could very well cause you to lose your job. THC builds up in your system in your fat stores, and Full Spectrum oil CAN cause a fail on a test, don’t listen to anyone who tries to tell you differently. If you are tested, you need to go with Broad Spectrum or CBD Isolate, both of which contain zero THC.

Human grade CBD can be used on your pets – WRONG! There are a lot of products out there made for humans that can be seriously harmful to your pets, and many of the essential oils in them can be highly toxic for them. If you choose to go this route for your furry friends, please do your research beforehand, and ONLY purchase pet safe products with extensive 3rd party testing done on them.

The company has the absolute best product on the market, and all others are inferior – There is no one best CBD oil, and whenever I see this claim from CBD reps it really irks me. There are a lot of really awesome companies out there right now, with more being established every day. Over the past year I’ve had the opportunity to try out many different products, and I’m still hard-pressed to pick a favorite, because there have been so many effective ones. When they tell you their CBD is the only one to consider, back away!

Hemp oil is better than CBD – One persistent rep is going around trying to tell everyone that hemp oil is better than CBD oil. Here is the difference between the two, and despite multiple attempts to try to educate, they are sticking with it.

Breast milk contains more THC then hemp – Ugh. So this is from the same rep that is trying to claim hemp oil is better than CBD oil. I shouldn’t have to explain this one, but the ONLY way that THC is getting into breast milk is if the mother consumes it. The industrial hemp plant, which most of the world’s CBD comes from, does contain THC, just in very low amounts.

CBD oil has no side effects – Yes, it does!!! Just like any other substance you put in your body, there are a few side effects to watch out for. Check out this post for more information on the subject.

CBD oil won’t interact with any medications you are on – This one especially people need to pay attention to. CBD works in much the same way as grapefruit does when it comes to your medications, and can have serious consequences if taken with certain ones. Drugs.com is a great place to go to check for any interactions, and ALWAYS check with a doctor before starting CBD if you are on any medications currently.

Full Spectrum is the only way to go – While the “Entourage Effect” is real, and shows that whole plant extracts can be more effective, Full Spectrum contains THC, and can not be taken by everyone, especially those who are drug tested.

CBD must contain only 2-3 ingredients, anything else is “junk” or “fillers” – This claim is everywhere. And it absolutely false. There are different products out there that contain ingredients specifically targeting energy levels, some that are designed for better sleep, some with added ingredients to help with pain, etc. There are also claims that hemp seed oil is the ONLY carrier oil to be used in order for it to be effective, but there are plenty of other suitable carrier oils used for CBD, including MCT or coconut oil. As long as the company is providing up to date, accurate 3rd party testing on their products, it is going to contain CBD, and might just have some extra added benefits in there as well.

These are just a few. There are a lot of other outlandish claims that I’ve seen floating around, but we would be here all day if I tried to list them all.

The people who join these companies rarely take the time to do their own research, and instead choose to share information that they have been spoon-fed by their up lines. I see it time and time again from the reps, all sharing the same bogus information.

Take the time to do your research on anything that you are going to be putting into your body, especially with something that contains a substance that is still highly illegal in many parts of the world. Here is a list of guidelines that you absolutely need to be following when you are looking to buy CBD oil, and having accurate 3rd party testing is a MUST!

So how do I know if a CBD company is an MLM or not?

MLM CBD companies can be hard to spot sometimes. Some dead giveaways include:

Any phrasing along the lines of – Side gig, opportunity, join our team, financial freedom, work for yourself/be your own boss, get paid to promote, etc. will likely be an MLM.

PM me for more info – Anyone who asks you to PM(private message) them in a group about a product and won’t directly share it with the rest of the group is likely part of an MLM company and trying to sell to you. This is rampant in almost every Facebook group that I am a part of, and is becoming more and more frustrating, especially when it comes to CBD products.

Referral required – You shouldn’t need a referral to sign up for any company in order to purchase their products. This information and access should be readily available on the site.

You can also Google the company name and MLM, the information will pop up right away on whether or not it is one.

Here is a list of SOME of the MLM CBD companies operating right now:

Hempworx

Kannaway

Hemp Herbals

Dose of Nature

Bocannaco

Zilis

Prime My Body

Isodiol

First Fitness Nutrition

CTFO

Nutritional High

Biocare

Hemplavate

Young Living

All of the products in companies like these are generally overpriced, and can be found elsewhere for much, much cheaper. They are priced this way to reflect affiliate payouts.

Many of the legit CBD companies who don’t follow the MLM business model regularly run promotions and deals that can save you some serious cash, and there are a number who offer assistance programs for veterans, first responders, people on long term disability, and low income households. These discounts can go up to 60% off, so make sure to shop around and see if you are eligible!

There are all sorts of different price points to CBD oil, and there are products available for every budget.

Ready to check out some awesome non-MLM CBD companies?

All of the companies on our recommended list are 100% MLM free, organic, 3rd party tested, and come backed by thousands upon thousands of positive reviews. They have been chosen for their quality, their commitment to the community and providing only the safest products, they have the interest of the consumer at heart, and they don’t mess around when it comes to CBD.

Mallory Milne

Mallory is a mom of two. as well as the main content writer and owner of CBD Handle. She has been a consumer advocate and CBD user since 2018, and strives to relay accurate, easy to understand information and to educate others on the health benefits of CBD.

8 thoughts on “MLM And CBD – The Top Reasons To Avoid Any Company That Follows This Business Model”

Hi
Thank you so much for this amazingly informative article.
The internet needs more people like you who are going to say how it is with regard to the scams and misinformation out there.

I have seen the advertisments for these sort of companies, and I must admit that I’ve been tempted. I’m so pleased to have found your article before I signed up!
As I have an interest in CBD, I’m finding this whole site very interesting. I’ve bookmarked it now, so I’ll be coming back!
Best wishes,
Judy

Glad I caught you before you did! I wasn’t so lucky unfortunately, and did get caught up in an MLM company quite some time back now. It was not a pleasant experience, and I’m happy to report that I made it out in one piece! I’ll continue to share this with others, in hopes that I can prevent anyone from joining an extremely predatory business situation. Thanks for reading!

I am a user of cbd, it is my pain go to many days after multiple back issues. I have spent HUNDREDS to find real true cbd products, finally found a couple and I stick with those. I just wish I found this website long ago, but hey, better late than never:) Now I will read as much as I can here and come back for more, I just had to comment on this awesome info and thank you!!!

Hi Mallory
This article is fantastic, loads of valuable information in here to watch out for so not to get caught up in those nasty MLM scams. I’ve seen these scams being promoted on social media and too have been tempted to ask for more information through a PM, always resisted and now glad I did. I’m sure the information in your article will save a number of people from getting caught up in these horrible scams.

My husband was dying of cancer, when my neighbors (who I hated) approached him outside with fake concerns of his health. I return home from work to him beaming with excitement,something I had not seen in some a long time. I said “You look very happy today”. He then proceeds to tell me that the neighbors, who sell Hempworx, told him that there was some videos on their Facebook page of people who’s cancer was cured using their CBD oil and that he ought to check them out. He’s got this smile as he asks me to find their page on Facebook. My heart literally sank and the rage I felt inside was nothing I ever felt before..For real, I wanted to physically hurt them… Still to this day, a year later, I flip them off every single time I see them outside!

He watches the videos and low and behold the two that were “cured” sold it as well. Imagine that 🙄 How do you tell a guy who’s 52 and who has ran out of all options this this is bullshit? I told him he should absolutely try CBD but let’s find a reputable place to get it from because it’s an MLM and they’ll say anything to make a sale. In the short time of them speaking to him, they literally had him convinced that there’s was the purest on the market, so of course he didn’t want to try any other kind.

He bought it, he tried it, he died 4 months later!!!!! They’re disgusting vultures and I let everyone and anyone in my town just know how disgustingly low these people are! Please don’t fall prey to any of these vile people!

I have no words for the emotions that your comment brought on. I am so, so sorry about your husband, and that he was taken advantage of in such a vulnerable state. I can’t even imagine what that must have been like to go through. After so many encounters with these people I have nothing but bad things to say about the way they operate, it is literally anything and everything to make a buck. Thank you for taking the time to comment, I hope it really resonates with some people who are considering any company like this.

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